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OBAMA LAYS OUT CLIMATE AGENDA: For everyone thinking they could blow off yesterday and do a little shopping, sorry, but things got crazy as the president laid out his climate agenda. And once again, POLITICO has more stories than a “Soapnet” subscriber with a full DVR. Let’s get to it.

WHAT YOU NEED TO KNOW: President Barack Obama outlined a wide-ranging climate plan yesterday that’s centered on greenhouse gas regulations for power plants — while making a surprise mention of the Keystone XL oil pipeline and defending his increasingly embattled nominee for EPA administrator. Andrew Restuccia has what you need to know about the speech and Obama’s climate plan, including takeaways on Gina McCarthy, what will happen to coal and the parts that some environmentalists won’t like: http://politi.co/11YDXqQ

READING BETWEEN THE PIPELINES: Obama basked in applause as he announced what sounded like a daunting environmental threshold for the controversial Keystone XL oil pipeline — that the project can’t go forward if it would “significantly” increase greenhouse gas emissions. What he didn’t mention: His own State Department has already indicated that the pipeline can meet that standard. The State Department still hasn’t issued its final environmental study on the pipeline, and the EPA has joined green activists in criticizing a draft study from the department that said Keystone’s environmental impact would be minimal. Talia Buford has the story: http://politi.co/11YV3Fj

WAR (ON COAL) IS HELL: Obama’s opponents have accused him for years of waging a war on coal — and yesterday, he sounded the cannons. Obama’s plan goes after coal on multiple fronts. It orders EPA to write long-expected regulations setting greenhouse gas limits that would undoubtedly fall heavily on coal-fired power plants. The plan aims to discourage the construction of coal plants overseas, which could hurt exports, and calls on owners of coal-burning operations to switch to natural gas. Altogether, the results could deal a death blow to the American coal industry. Erica Martinson explains it all: http://politi.co/18eVqnt

WHAT’S A GOP TO DO? Republican lawmakers may be irate over Obama’s plans, but there may be little that Congress can do to stop the push for new landmark EPA rules to cut emissions from power plants. Since last Congress, House Republicans have exercised their majority power to pass measures calling for expanded oil and gas production, restricting the EPA and canceling other Obama environment and energy initiatives. But the Democrat-controlled Senate has blocked every move. Darren Goode has a great look at how Republicans are essentially stuck: http://politi.co/18eYdx9

TALKING POINTS — STAY AWAY FROM ECONOMIC ARGUMENT: A set of talking points issued by a coalition of Obama supporters recommends downplaying some of the economic and jobs benefits of a climate action plan he rolled out yesterday and instead focus on the harm that Americans are suffering. The “message guidance” to a network of Obama advocates contained a table listing “Dos and Don’ts” that suggested campaigners should not “lead with straight economic arguments” or to “try to suggest net job increases.” Darren Goode again: http://politico.pro/17Bkp52

The New York Times: “It is an impressive lineup that aims not only to reduce carbon emissions but to strengthen the nation’s defenses against rising seas, more intense storms, drought and other consequences of global warming. But, so far, it is only a list, involving many moving parts and government agencies, and seeing it through will require coordination and, above all, a continuing commitment from him.” http://nyti.ms/14WGQha.

The Washington Post: “Mr. Obama’s plan is far from perfect. For one thing, it excludes the best anti-emissions policies, such as carbon taxes, that all require Congress’s approval. For another, it appears the EPA’s new rules on existing power plants could take a very long time to write and implement. … But the major elements of the White House’s plan are still far better than settling for congressional inaction.” http://wapo.st/17B38ZT

The Wall Street Journal: “Mr. Obama might have at least announced his war on carbon before the election and let voters have a say. Instead he posed as the John the Baptist of fossil fuels in locales such as Ohio, Pennsylvania and Virginia — taking credit for the shale fracking boom he had nothing to do with and running ads attacking Mitt Romney as anticoal. Now safely re-elected, Mr. Obama figures he can do what he pleases.” http://on.wsj.com/16yudbk

GREEN GROUP LAUNCHES AD BLITZ BACKING OBAMA’S PLAN: The Environmental Defense Action Fund is providing backup for Obama’s plan with ads that start airing today in Arizona, Colorado, Illinois, Maine, New Hampshire, Ohio, Pennsylvania, Virginia and Washington, D.C. EDAF will run the spots heavily for the next two weeks and then keep it on news programs for the rest of the summer. Spanish versions will run on CNN Español and other Spanish language networks. Ad 1: http://youtu.be/tIMgufsuc18. Ad 2: http://youtu.be/BaauranUmGw. Ad 3: http://youtu.be/-cxdSXOQwEY

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MARKEY WINS SENATE RACE; STEYER THE OTHER WINNER: The only person happier than Ed Markey about the results of the Massachusetts Senate election may be Tom Steyer, the San Francisco billionaire who staked his reputation on the outcome. Markey’s victory last night helps legitimize Steyer — a former hedge fund trader who is hoping to put environmental issues like climate change on the map in 2014 — as a player in the world of money and politics. Steyer said in a statement yesterday that Markey’s victory “represents a political lesson for those candidates running in 2014 and beyond: When climate is on the ballot, the candidate who leads on climate will be the candidate who wins at the ballot.” Andrew Restuccia has more for Pros: http://politico.pro/15DMDFj

Obama gives Markey accolades: In a statement last night, Obama praised Markey for "fighting carbon pollution" in the House. "He’s earned a reputation as an effective, creative legislator, willing to partner with colleagues across the aisle to make progress on the issues that matter most," Obama said.

Reaction: Green groups were happy (and the win was icing on yesterday’s cake, for many). “Ed Markey’s victory is proof that the momentum for action on climate change has passed a tipping point. We congratulate Senator-elect Markey on his big win tonight,” said Gene Karpinski, president of the League of Conservation Voters. NRDC Action Fund Executive Director Peter Lehner added: “Sending an environmental champion to the U.S Senate is even more important today, as President Obama just laid out a bold, but achievable and economically solid, plan to fight the climate change that threatens our children and their future.”

DeFAZIO-GRIJALVA MATCH-UP INTENSIFIES: With Markey’s win, the race to the top of the Natural Resources Committee’s roster of Democrats, an increasingly nasty feud between Reps. Peter DeFazio and Raul Grijalva, will only get more intense. Yesterday, Grijalva announced that former lawmakers from Oregon — DeFazio’s home state — were signing on to a previous letter from enviros pushing for Grijalva to take the ranking member spot. Former Rep. Jim Weaver (who used to hold the seat DeFazio now fills) and former County Commissioners Bill Fleenor, Jerry Rust and Rob Handy added their signatures to the letter: http://1.usa.gov/12nSBYJ

THAT OTHER SPECIAL SENATE RACE: ME got a chance to catch up with Rep. Rush Holt, one of the Democrats running to replace the late Sen. Frank Lautenberg, after yesterday’s big climate speech. “Just imagine what it would be worth to New Jersey and to the country to have a scientist in the Senate,” said Holt, a physicist by training and one of the few non-medical scientists in Congress. “Somebody who has worked in energy, somebody who has a patent on a solar energy device, somebody who has collaborated with international energy scientists and has a network of people around the world to work with on energy policy. … People in New Jersey probably don’t need another reminder that this requires, as the president said, ambitious action, because the problem is that big.”

EIA CHIEF LAYS INTO RFS: The House Energy and Commerce Committee's energy and power panel holds a hearing this afternoon on government perspectives of the Renewable Fuel Standard, and Energy Information Administration chief Adam Sieminski has some hard testimony for RFS supporters. “The RFS program is not projected to come close to achievement of the legislated target that calls for 36 billion gallons of renewable motor fuels use by 2022,” Sieminski said in his written remarks, noting it’s not really a new conclusion. Sieminski goes on to say that RFS targets can't possibly be met with the current blends of ethanol, that ethanol faces serious demand and distribution issues and that cellulosic and other advanced biofuels haven't panned out in the timeframe set up by the EISA. Sieminski’s testimony: http://1.usa.gov/122deeb. Hearing info: http://1.usa.gov/1c1uc0W. 1:30 p.m., Rayburn 2123

A WELL-ROUNDED ARGUMENT: Obama yesterday excoriated Republicans skeptical of climate change as members of the Flat Earth Society-but there's a twist. Salon: “As it turns out, there is a real Flat Earth Society and its president thinks that anthropogenic climate change is real. In an email to Salon, president Daniel Shenton said that while he ‘can’t speak for the Society as a whole regarding climate change,’ he personally thinks the evidence suggests fossil fuel usage is contributing to global warming.” More: http://bit.ly/1abGWWi

USGS TO ESTIMATE U.S. CARBON STORAGE CAPACITY: Right on the heels of Obama’s climate speech, the Interior Department today is set to release what it’s calling “the first-ever detailed national geologic carbon sequestration assessment.” If you're a fan of the U.S. Geological Survey's estimates of oil and gas reserves from around the nation, you'll definitely want to tune in to hear how much carbon storage capacity the U.S. has in the event carbon capture and sequestration becomes widespread. Interior Secretary Sally Jewell, Deputy Interior Secretary David Hayes and Brenda Pierce of the USGS will hold a teleconference today at 11 a.m. to discuss it.

SENATE CONSERVES POWER: Capitol administrators had a request yesterday for Senate officers turn off nonessential televisions, lights and outdoor fountains to save energy and help meet consumption reduction targets written into the Energy Independence and Security Act of 2007. In a note to Senate staffers yesterday, Lawrence Barr of the Architect of the Capitol’s office asked congressional workers to take extra steps to conserve energy from noon yesterday through this morning. “This curtailment program decreases energy consumption as required by EISA 2007, reduces electrical rates next year and increases the reliability of the regional electrical grid thus reducing the potential of power brownouts and blackouts,” he wrote in an email obtained by ME.

ITIF PUSHES ITS OWN ENERGY SECURITY TRUST: The Information Technology and Innovation Foundation is out with a new report today pushing their own flavor of the Energy Security Trust concept that Obama and congressional Republicans have been at odds over. ITIF’s version would funnel federal increased oil and gas drilling royalties into the Energy Department’s popular ARPA-E operation to the tune of $1 billion a year rather than just transportation alternatives. But there’s a significant catch: ITIF is supporting expanded drilling in the outer continental shelf — a big no-no for the White House, which has been trying to sell a version where the money only comes from existing leases. The report: http://bit.ly/137bJlc

— Jim Balsillie, the former CEO of BlackBerry maker RIM, will chair a Canadian agency that promotes green tech. Canadian Press: http://bit.ly/10jFrjh

— Blake Clayton and Adam Segal of the Council on Foreign Relations has a brief on today outlining cyberthreats to oil and gas supplies: http://on.cfr.org/14w6vLE

— The American Council On Renewable Energy released a study yesterday on how federal and state policies are boosting private capital in the renewable energy industry: http://bit.ly/17dBnTp

THAT’S ALL FOR ME. See you tomorrow.

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